Glennis White
28 Nov 2020

A 10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at a premium. Which of the following statements is CORRECT?

A. The bond's current yield is less than 8%.
B. If the yield to maturity remains at 8%, then the bond's price will decline over the next year.
C. The bond's coupon rate is less than 8%.
D. If the yield to maturity increases, then the bond's price will increase.
E. If the yield to maturity remains at 8%, then the bond's price will remain constant over the next year.

1 answer·0 watching·51 views
 Tshego Monchusi
Tshego Monchusi
21 Jan 2021

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